Industry NewsMortgage

OFHEO says no to raising caps on GSEs’ loan portfolios

'Significant supervisory concerns' remain about Fannie, Freddie
Published on Aug 13, 2007

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by CareyBot

Echoing statements by President Bush, federal regulators said Friday they aren't ready to lift caps on the loan portfolios of mortgage repurchasers Fannie Mae and Freddie Mac.

The government-sponsored entities, or GSEs, haven't finished fixing problems uncovered by accounting and management scandals, regulators said, and raising caps on Fannie and Freddie's portfolios would provide little relief for subprime and Alt-A borrowers for whom loans have grown scarce.

Democratic Senators Christopher Dodd and Charles Schumer are among lawmakers who have urged the Office of Federal Hou ...